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HMRC internal manual

Compliance Handbook

Penalties for failure to file on time: Types of penalties for failure to file on time: Returns for periods between 2 and 6 months: 12 month further penalties: Overview

This page currently only applies to returns required for machine games duty (MGD).

If the failure continues 12 months after the penalty date, we need to consider whether, by failing to file the return,

  • the person has deliberately withheld information, and
  • the information withheld would enable or assist HMRC to assess the person’s correct liability to MGD.

This is the only penalty for failing to file a return or document or other document that considers the persons behaviour that led to their failure. The amount of the penalty depends on whether the information was

  • deliberately withheld and concealed,
  • deliberately withheld but not concealed, or
  • not deliberately withheld.

Where the person has demonstrated more than one behaviour it is the highest penalty percentage attributable to the behaviours demonstrated that is used to calculate the 12 month further penalty. The nature and quality of a disclosure also affects the penalty percentage where the person deliberately withheld information.